The First Home Owner grant was introduced in 2000. It’s a payable amount to eligible first time buyers, on the purchase of a new home. This can involve the purchase of a pre-existing lot, or the construction of a new one.
It’s a national scheme that is funded by individual states and territories. It is administered under individual state law, and therefore there are differences in requirements for buyers between each state.
Can Rentvesters Get The Grant?
Rentvesters are people who rent their home but has purchased one or more properties for investment purposes. The number of rentvesters is ever increasing each year in Australia – particularly within the younger generations. The reason for this being that it’s easier to get on the property ladder this way.
Rentvesters buying a residential property after 1st July 2000 may be eligible for a First Home Owner grant, if they’ve not previously been in receipt of one. They must however, not occupy the investment property. The rules in this regard will vary from state to state.
In NSW, Victoria, SA and Tasmania, rentvesters are ineligible for the First Home Owner Grant if they’ve occupied the investment property for more than half a year. In Queensland and the Northern Territory, occupation of the property at any point would make a rentvester ineligible for the grant.
Finally, Western Australia and the capital territory do not authorise the grant for those who have lived in the property before June 2004, or for more than 6 months after June 2004.
Rentvesters applying for the First Home Owner Grant may have to provide evidence that they’ve been residing outside of the investment property address. Evidence may include lease agreements, utility bills, tax returns etc.
Eligibility requirements don’t just apply to the individual applying for the First Home Owner grant – but include their spouse and family members. For example, if the spouse was not eligible for the grant, neither would they be.
Stamp Duty Concessions
Stamp duty is payable on the purchase of a property under normal circumstances however, some states and territories make concessions to this rule – usually in the case of first-time buyers.
NSW, Victoria, Queensland, WA and NT have specific concessions concession for buyers who are purchasing under the relevant thresholds. In NSW and Queensland, rentvesters are not eligible for First Home Owner Concessions.
In Victoria and WA however, the rules are somewhat different. First Home Buyer Duty Reduction (Victoria) and First Home Owner Rate of Duty (WA) are the same as in the First Home Owner grant – so investors buying their first home here may be eligible for a stamp duty concession on the state – what a treat.
Where there are no concessions available for first home owners, there may be other stamp duty concession methods. These however, are not usually discounted in the context of first time purchases.
You can find out further information for specific states, from the relevant state or territory revenue office website.